What is an Interim Payment?

An interim payment is an advance payment of part of the compensation you are likely to receive in a personal injury claim. It is paid before your claim has been fully settled and is deducted from your final compensation award.

If you’ve been injured in an accident, waiting for a claim to conclude can place considerable financial pressure on you and your family. An interim payment can provide access to funds while your claim is ongoing, helping with loss of earnings, treatment, rehabilitation, care and other expenses arising from your injuries.

Interim payments may be available following many types of claim, including accidents at work, road traffic accidents and serious injury cases.

Interim payments can be particularly helpful if your injuries have prevented you from working, left you with unexpected expenses, or mean you need treatment, rehabilitation or care before your claim reaches its conclusion.

In this guide, we’ll explain what an interim payment is, when you may be entitled to one, what it can be used for and how the process works.

Key Points

• An interim payment is an advance on your final compensation award.
• It is not additional compensation and will be deducted from your final settlement.
• Interim payments are commonly available where the other party has admitted liability, or where there is sufficiently strong evidence that you would obtain a substantial compensation award if the claim went to trial.
• They can help cover essential expenses such as loss of earnings, rehabilitation, medical treatment and care during the claims process.
• A specialist personal injury solicitor can advise whether an interim payment may be available in your circumstances.

How Do Interim Payments Work?

An interim payment works by allowing part of your compensation to be paid before your claim has been fully settled. Rather than waiting until every aspect of your claim has been resolved, an advance on your compensation can provide financial assistance while investigations, medical evidence or negotiations continue.

This payment is not an additional award of compensation. It is simply an advance on the compensation you are expected to receive when your claim concludes. Any interim payment you receive will usually be deducted from your final settlement.

Interim payments are most commonly made in claims where the other party has admitted liability, or where there is sufficiently strong evidence that you would obtain a substantial award of compensation if the claim went to trial. They are particularly common in serious injury claims, where people may need immediate access to funds for rehabilitation, specialist equipment or to replace lost income.

When Can You Apply for an Interim Payment?

Not every personal injury claimant will be entitled to an interim payment. They are usually available where it is clear that you are likely to receive compensation, but your claim has not yet reached its conclusion.

In many cases, an interim payment can be requested once the person or organisation responsible for your injuries has admitted liability. However, even if liability has not been formally admitted, it may still be possible to apply for an interim payment if there is sufficiently strong evidence that you would obtain a substantial award of compensation if the claim went to trial.

Whether an interim payment is appropriate will depend on the facts of your case, and each application is considered on its own merits.

Interim payments are often considered in more serious injury claims, particularly where a claimant is unable to work or needs financial assistance for rehabilitation, medical treatment or ongoing care while the claim is being investigated.

If the other party refuses to agree to an interim payment, it may be possible for the court to order one if the legal requirements are met.

What Can an Interim Payment Be Used For?

An interim payment is intended to ease the financial pressures that can arise following a serious injury. Every case is different, but the payment can be used to cover a wide range of reasonable expenses while your claim is ongoing.

Depending on your individual circumstances, an interim payment may help pay for:

• Loss of earnings if your injuries have prevented you from working.
• Mortgage or rent payments and other essential household bills.
• Private medical treatment, physiotherapy or other therapies not available immediately through the NHS.
• Rehabilitation, helping you access the specialist support needed to aid your recovery.
• Care and assistance, whether provided by professional carers or family members.
• Specialist equipment, such as wheelchairs, mobility aids or adapted vehicles.
• Adaptations to your home, including ramps, stairlifts or accessible bathrooms.
• Travel expenses for hospital appointments, rehabilitation sessions or ongoing medical treatment.

For those who have suffered life-changing injuries, interim payments can play a particularly important role. They can help fund early rehabilitation and support, allowing recovery to begin as soon as possible rather than waiting until the claim has been resolved. In many cases, access to timely treatment and specialist care can make a significant difference to a person’s long-term recovery and quality of life.

Ultimately, the purpose of an interim payment is to ensure that financial concerns do not delay access to the treatment, care and support you need. If you think you may be entitled to an interim payment, a specialist personal injury solicitor can advise on the options available to you.

How Much Can You Receive?

There is no fixed amount that can be awarded as an interim payment. The amount you receive will depend on the circumstances of your case, including the severity of your injuries, your financial needs and the likely value of your final compensation award.

If an application is made to the court, the court will not order an interim payment of more than a reasonable proportion of the likely final compensation award. This helps ensure that the interim payment does not exceed what can safely be paid before the final value of the claim is known.

An interim payment is intended to provide support with essential expenses before your case is settled, rather than paying your full compensation in advance. The amount requested should reflect your immediate financial needs, such as loss of earnings, rehabilitation costs, medical treatment or essential living expenses.

If the other party agrees to make an interim payment, the amount will usually be negotiated between the parties. If an agreement cannot be reached, the court may decide what amount is appropriate based on the evidence available.

How Long Does It Take?

There is no set timescale for receiving an interim payment, as every situation is different. The length of time will depend on a number of factors, including the complexity of your case, whether liability has been admitted and how quickly the necessary medical and financial evidence can be obtained.

If the other party agrees that an interim payment should be made, the process can often be resolved relatively quickly through negotiation. However, if liability is disputed or there is disagreement about the amount requested, it may be necessary to apply to the court, which can take longer.

Your solicitor will work to secure an interim payment as soon as reasonably possible, particularly where there is an urgent need for financial assistance, rehabilitation or ongoing care. While there are no guarantees, making an application at the appropriate stage of your claim can help avoid unnecessary delays.

Can an Interim Payment Be Refused?

Yes. An interim payment can be refused, and not every claimant will be entitled to receive one.

In many cases, the other party or their insurer may agree to make an interim payment voluntarily. However, they may refuse if they believe liability has not yet been established, if there is insufficient evidence to support the claim, or if they consider the amount requested to be unreasonable.

Even if an interim payment is refused initially, this does not necessarily mean you will never receive one. Depending on the circumstances of your case, it may be possible to negotiate further or make an application to the court. If the court is satisfied that you are likely to receive compensation and that an interim payment is appropriate, it can order the defendant to make a payment before your claim is finally settled.

Does an Interim Payment Affect My Final Compensation?

Receiving an interim payment does not reduce the amount of compensation you are entitled to receive. Instead, it is treated as an advance payment and will be deducted from your final compensation settlement once your claim has concluded.

For example, if your claim is ultimately valued at £100,000 and you have already received an interim payment of £20,000, you would receive the remaining £80,000 when your claim is settled.

An interim payment is designed to provide access to funds while your case progresses, not to replace or reduce your final compensation award. It simply allows you to access part of your compensation earlier, helping to ease financial pressures and ensure you can access the treatment, rehabilitation or support you may need before your case concludes.

Frequently Asked Questions

Can I have more than one interim payment?

Yes. Depending on the circumstances of your claim, it may be possible to receive more than one interim payment. This is often the case in more complex or serious injury claims where ongoing treatment, rehabilitation or care is required over a longer period. Each request will be considered on its own merits.

Do I have to pay an interim payment back?

An interim payment is not a loan. In the usual course of a successful claim, it is simply deducted from your final compensation award rather than being repaid separately. There can, however, be circumstances in which the court adjusts an interim payment, so your solicitor will advise you about this in the context of your individual claim.

Can I receive an interim payment before my claim has settled?

Yes. An interim payment is specifically designed to provide financial support before your claim reaches its conclusion. However, there must usually be sufficient evidence that you are likely to succeed with your claim before an interim payment will be made.

Is an interim payment taxable?

Personal injury compensation is generally not subject to Income Tax or Capital Gains Tax, and the same generally applies where part of that compensation is received early as an interim payment. However, tax may become relevant if you subsequently invest your compensation and receive interest, investment income or gains. If this is relevant to your circumstances, you should seek appropriate financial or tax advice.

Do I need a solicitor to apply for an interim payment?

Although it is possible to apply for an interim payment without legal representation, having a specialist personal injury solicitor can make the process much easier. Your solicitor can assess whether you are likely to qualify, negotiate with the other party or their insurer and, where necessary, make an application to the court on your behalf.

How Accident Solicitors Direct Can Help

If you’ve suffered an injury and are pursuing a personal injury claim, Accident Solicitors Direct can advise whether an interim payment may be appropriate in your circumstances.

Our experienced personal injury solicitors will take the time to understand your circumstances, assess the progress of your claim and advise whether an interim payment may be appropriate. Where appropriate, we will negotiate with the other party or their insurer to secure an interim payment as quickly as possible. If an agreement cannot be reached, we can also advise on whether an application to the court is appropriate.

We understand that recovering from an injury can place significant financial and emotional pressure on you and your family. Our aim is to help you access the compensation, rehabilitation and support you need at the earliest opportunity, allowing you to focus on your recovery while we deal with the legal process.

If you would like to discuss your claim or find out whether you may be entitled to an interim payment, contact Accident Solicitors Direct today for a free, no-obligation discussion.